Last visit was: 06 Sep 2026, 22:05 It is currently 06 Sep 2026, 22:05
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 06 Sep 2026
Posts: 113,167
Own Kudos:
839,612
 [3]
Given Kudos: 111,337
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 113,167
Kudos: 839,612
 [3]
Kudos
Add Kudos
3
Bookmarks
Bookmark this Post
User avatar
BongBideshini
Joined: 25 May 2021
Last visit: 05 Sep 2026
Posts: 390
Own Kudos:
242
 [1]
Given Kudos: 137
Location: India
Concentration: Entrepreneurship, Marketing
GPA: 3.8
WE:Engineering (Government)
Posts: 390
Kudos: 242
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
DeadScout
Joined: 25 May 2026
Last visit: 06 Sep 2026
Posts: 19
Own Kudos:
Given Kudos: 10
Location: Qatar
GPA: 14.67
Posts: 19
Kudos: 2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
arushi118
Joined: 21 Jul 2024
Last visit: 04 Sep 2026
Posts: 280
Own Kudos:
92
 [1]
Given Kudos: 894
Location: India
Concentration: Leadership, General Management
GPA: 8.2/10
Products:
Posts: 280
Kudos: 92
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
A. Without the incentive of a deduction of the full value of the car, at least some individuals will no longer donate their used cars to charity as they otherwise would have.

B: Too strong. The argument only says many charities rely on this income, not that it is their only funding source.

C: Irrelevant. The reason for the legislation does not affect whether charities will lose funding.

D: Not required. Donors could still give cash or other goods; the argument is about car donations specifically.

E: A policy recommendation, not an assumption needed for the argument to work.
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 06 Sep 2026
Posts: 113,167
Own Kudos:
Given Kudos: 111,337
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 113,167
Kudos: 839,612
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
Recently proposed legislation would change the way that the federal government treats the donation of used cars to charity. Under current rules, people can donate used cars and take a deduction equal to the full value of the car on their taxes. Under new rules, only a small fraction of the value of the car could be deducted. Since many charities rely on the income produced from used car donations, the new rules will severely impair the financial capabilities of these charities, and possibly cause some to shut down.

The argument above assumes which of the following?

A. Without the incentive of a deduction of the full value of the car, at least some individuals will no longer donate their used cars to charity as they otherwise would have.

B. Money generated from the sale of donated used cars provides the only source of funding for many charities.

C. The only reason for adopting the proposed legislation is to prevent the abuse of the system by car brokers who make money by buying used cars donated to charities and then selling them for large profits.

D. People that donate cars to charities do not donate cash or other goods to charity.

E. Income tax laws should be changed so that people who wish to donate a car can sell the car themselves and then donate the proceeds for a deduction.

­
Official Explanation

Identify the Question Type:

From the stem it is clear that this is an Assumption question. You can see that the author makes an assumption to predict the future using a plan, proposal, and prediction argument (p/p/p).

Untangle the Stimulus:

Evidence for the plan is given at the beginning of the statement with a conclusion about the proposal set out in the last sentence. The assumption that ties the evidence to the conclusion takes the form of a prediction about the future.

Predict the Answer:

So, what is an assumption made by the author? Selecting an assumption in a p/p/p argument that is more or less likely to come true is the best way to find the correct answer.

Evaluate the Choices:

Answer Choice (A) states clearly that without the tax incentive some individuals will no longer donate their used cars. This is the prediction and assumption the author supports, and is therefore the correct answer.

Choice (B) mentions an assumption that money from the sale of used cars is the only source of income for many charities. This is not a prediction and is too extreme to be correct. Even if the charities did have other sources of income, the possibility exists that they might shut down.

Choice (C) says that the legislation is designed to keep middlemen from making large profits from donations. This prediction is not in the statement; choice (C) is out of scope.

Choice (D) suggests that people that donate cars do not support charities in any other way. This is not a prediction and thus is irrelevant.

Choice (E) recommends changing more laws. This introduces a new idea, and is not an assumption upon which the argument rests, so it is out of scope.

Answer: A­
Moderators:
GMAT Club Verbal Expert
7399 posts
Verbal Forum Moderator
705 posts